Serious question -
In today's highly digital and technical world, why do banks continue to use 360 day conventions for interest calc instead of actual?

I realize it is does not create a huge difference, but it still is a difference that adds up depending on amount of borrowing or notional value.

like
Posting as :
works at
You are currently posting as works at

Ha! Bold of you to assume 360-day is the only convention that is used. It depends on the asset class, some use Actual/Actual, some use 30/360, and so on. Changing any of it would require major overhaul of all banking systems and it’s really not worth the effort, since the senior people have been used to it

like

I don't think I said it's the only one used?
I guess I am just wondering in general why it is still used at all when it obviously creates more income for the bank and less for investor/client.
But yeah it would create world wide issues.

like

Because the # of days in a year have not changed.

That I am not certain about, perhaps 360 is quicker for back of the envelope instead of 365/366? Maybe it’s a legacy practice from back in the day when they had to do quick math instead of having a calculator at hand all the time and they found it easier to use 360. These are just my suppositions.

like

Related Posts

TRON correction anytime soon or buy at .20?

like

off topic question.
peoe buying lands on moon but who is authorised to sell land on moon as its no country's property. is it a scam.

like

Base: 5 lakh
HRA: 2 lakh
Max how much I can exempt with HRA while filing ITR?
I live in my own house. I can pay to my parents in the name of rent.
What are the documents I need to produce?

What is the deal with online lenders for mortgage? Has anyone used them or know why they are substantially cheaper rates? What’s the downside?

like

Interesting investment opportunity with PSTH. Biggest SPAC with Tontine warrants. In short, for every 9 common shares you buy and hold through the merger, you get 2 shares priced at $23. The price right now is $26. I would get in and gradually increase by a multiple of 9 and hold until at least Dec 2021

like

Bhaiyon aur Behno!
Gurgaon me kisi Broker ka number hai to dedo

Dhanyawaad

likesmart

Just want to know how much people actually pay for mortgages on a salary about $120k I am looking at homes and I want to upgrade but I don’t want to be house rich. I don’t mind living below my means but I also want my children in a better school district. Just confused…

like

Hi guys! Looking to learn about real estate investing! I am a senior in college graduating with a degree in finance so I understand certain aspects, but am looking to learn more on my own about real estate specifically!

What books would you recommend I read?

like

I’m up over 130% on Blink. Would you buy more, hold, sell some, or sell all and lock in some gains?

like

How Income tax deduction is calculated in Mphasis payslip?

Is there any specific % or threshold values?

like

Hi everyone! Looking for some advice on my side hustle. I’m running an e-commerce store selling primarily home decor, and I wanted to get some honest feedback & suggestions on the site to see what I can improve for better conversions. I’ll leave the link in a comment for anyone who would like to take a look.

like

I’ve got cash that I want to conserve (for bschool) and my time horizon is 1 year. It is currently all sitting in a HYSA. Should I bother moving it to a higher return investment and if so what would that be? Thank you!

like

Today I lost out on a house because my offer of $90k over the list price was beat out by another bid. Everyone else having an equally crappy Monday?

likefunny

What is everyone’s take on the NYC housing market? More people and businesses are moving out. I’d imagine it has to continue to dip. Also, they’re considering turning adding more units by converting commercial space into residential space. Inventory is going to be through the roof for rentals. I’d think that has to ultimately impact home prices.

like

If planning to buy my first home in next 1-2 years, what should I be doing now leading up to the purchase e.g. things to boost credit score?

like

Tell me about your “About me” on your site. How personal do you get? How do you find the right balance?

like

Is direct lending/private credit technically buy side?

like

What’s the general guidance on the order to maximize retirement contributions for tax benefits for an normal individual and for a self employed/small business owner before moving to taxable accounts or alternate vehicles like cash value life policies?
I’ve seen for individual: match trad 401k->match roth 401k->max roth IRA->max trad IRA->max trad 401k->max roth 401k->max HSA
For self employed: max SEP IRA/solo 401k->max roth IRA->max trad IRA->max HSA

Of course situations differ but in general?

like

Does anyone know about the difference between PepsiCo GBS and India holdings?

like

More Posts

like

Amazon India I am working in Amazon India, I applied for an IJP where my hiring manager selected me for the role but my current manager is not ready to release me. Can someone please suggest what should I do

like

Anyone know a good date option for 1st date - I’m in north county but taking out a girl who doesn’t drink on Friday night , so I don’t want to pressure her with a bar setting.

like

Hello! I was offered a position at a start up biotech company. I would describe the position as a field laboratory technician (like Thermo Fisher) They’re offering a 60K salary. Do y’all feel like that is enough? I want to negotiate.

like

What would be a fair salary for urgent care telemed in NJ/NY with a DNP, 1 year experience as an np and 5 years experience as an ER RN?

like

I do 😂

Post Photo
likefunny

I got this

Post Photo
like

What diwali gifts/goodies we can expect from cognizant this year?

like

General Perceptions of firms: KPMG - big party-ers Deloitte- a little snobby PwC - arrogant, everything is a competition EY - nothing of note, just there.. What'd I get wrong/right?

like

Bilingual Talent Sourcer in Canada (French and English) seeking remote work. Please message with available opportunities 😁😁

like
like

Coming to the US after summer as I got my visa approved. However im seeing a lot of people commenting they got laid off. Is it risky for me to change countries right now and get a job I might lose in 3-4 months? Or it's not that bad overall?

like

I am an unmarried working man in his 30s with a southern mother. In other words I'm flying home for Christmas and my mother just called to tell me that she just happened to accidentally run into the sweetest girl from her church that she just knows I'll get along with and accidentally invited her to our house for dinner the night that I get home. Deadass the woman will not rest until I am tied down. Pray for me!

likefunny

I'm thinking I won't be getting promoted if not laid off at the end Q2 or sooner. What are some good exit ops for an associate with 2 yoe in tech consulting? Exp in Cloud, PMO, IT Risk, and SoD.

like

Have any one used a resume coach or service for in house job search, particularly for IP and product counsel positions? If so, how did you find a good one? Thanks!

like

Is there any difference between a scam and an arrange marriage?

like

Hi I'm looking for a referral for a Product Manager role at big4 or FAANG. I'm currently working as a Product Manager for tech company supporting NYPD IT Bureau. As a vendor, I design and develop CMS/RMS applications. I have 9 years of experience and would love to connect with someone at those companies to discuss my candidature for a Product management role.

like

Hi, fishes I am open to providing referral in TCS as a Java Developer. YOE: 1-3 Like this post so I may help.

like

Can anyone tell me what areas along purple line metro are the best to live in? My new workplace is near cubbon park and i have no idea about central Bangalore, or it even is central. I was thinking to get there using the metro line.

If someone can tell me some options that will be great.

like

Additional Posts in Finance

What are the funniest employee nicknames in your workplace?

like

Anyone ever heard of Credigy?

like

GS 2023 New Analyst Program. Is this a good program to apply for someone looking to start as an analyst? How easy is to get into this program or even GS overall? I have 1-2 years of experience and some Finra licenses if that can help me somehow. Looking for some opinions about the program. Thanks

like

What is the worst interview you ever had and why?

like

Anyone hiring buyside analyst in Toronto?

like

How much do VPs make at your firm by department ?

like

I’m in a final round interview with EY for entry level roles. Does it affect me negatively if my recruiter knows that I’ve offer from multiple other big 4 firms? I received a form to fill where It asks for any offers that I already have.

like

Just found my first grey hair. World’s smallest violin, I know...but still!!!

like

"How do the markets respond when the POTUS is retweeting terrorist propaganda?" Was never something that I expected to discover the answer to...

like

Do you have Asians that are in the MD-level on your team? How would you describe them? I find that it’s difficult for Asians to climb high up in the corporate ladder (also read the book bamboo ceiling

like
like

We have a big project going on and I am the only point person(initiate it, did lot of work, and knows the deets well), seems like my mgr wants to get a headcount. But I want to use this opportunity to get promoted, how can I get this across? Mgr is new(they fired my old mgr), mgr’s mgr is new too(re-org). So not sure if I should/can make a case, or how.

like

How much discretionary cash do you keep around?

like

I was thinking that the rise of driverless cars could mean no more car chase movies. Robots not only taking our jobs but also our movie plots

like

Does the stub bonus after A2A promote have any variability? I know BAML hasn’t announced yet so looking at past examples

like

How can I wear a backpack without wrinkling the shoulders of my dress shirt? Iron every night and they get wrinkled as soon as I put my backpack on.

like

Who would you rather have dinner with, Janet or Hillary?

like

What do typical year end bonuses look like? In my first year here and have no context

like

How bad is this trade war going to be?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal